American Machinist

Let's put the savings to good use.(Government Matters)

WITH TODAYS HYPER-partisan political climate in Washington, it is difficult to get a large number of Senators to agree on anything. However, 44 Senators (23 Republicans and 21 Democrats), led by Sens. Gordon Smith (R, Oreg.) and John Breaux (D, La.), have signed a letter that supports using revenues derived from repealing the Foreign Sales Corporation (FSC) to help the beleaguered manufacturing sector. FSC repeal would gain $50 billion over 10 years.

The European Union (EU) has placed a December 31, 2003, deadline on Congress to replace the FSC before it retaliates against $4 billion worth of annual U.S. exports to Europe. The World Trade Organization (WTO) ruled in 2001 that the FSC violates WTO rules and must be repealed. The EU filed the case after Congress passed a new FSC law in 2000 in response to a successful EU petition to the WTO that the original FSC also violated WTO tax-subsidy rules. …

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